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A statement from Convivialty read: "Despite a significant number of meetings with potential investors resulting in good levels of demand… there was ultimately insufficient demand to raise the full £125m.

"The board wishes to thank its customers, suppliers and employees for their continued support during this difficult period for the company.

"The company is in discussions with its lending banks and advisers regarding other possible options and is in receipt of a number of inbound enquiries regarding a potential sale of all or parts of the business."

It is believed that accountants PwC will become administrator should a buyer not be found.

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Conviviality is a supplier to Wetherspoons – the pub chain is not in danger of closure

Conviviality – which also owns Wine Rack – supplies more than 25,000 restaurants, hotels and bars, more than 700 franchised retail outlets, and 400-plus independent specialists.

It also supplies festivals and events, as well as major supermarkets.

Last week, chief executive Diana Hunter stepped down with "immediate effect", with non-executive chairman David Adams stepping into the breach until further notice.